Dell Technologies (NYSE:DELL)
Historical Stock Chart
1 Month : From Aug 2019 to Sep 2019
By Patrick Thomas
Shares of Dell Technologies Inc. (DELL) are off more than 6% to $46.97 after software company VMware Inc. (VMW) said Thursday it plans to buy Pivotal Software Inc. (PVTL) and cybersecurity provider Carbon Black Inc. (CBLK).
Dell is the majority owner of both VMware and Pivotal. VMware's shares are down roughly 9%. The proposed Pivotal deal, which the companies valued at $3.6 billion, called for VMware paying a blended price of $11.71 a share for each Pivotal share held.
Analysts at Morgan Stanley cut their price target for Dell to $56 from $70 a share to reflect the decrease in value of its Pivotal and VMware subsidiaries, the analysts said in a research note.
"Our valuation on Dell core is unchanged, however we expect to adjust our Dell model estimates after the company reports July quarter earnings on Thursday," the analysts said.
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(END) Dow Jones Newswires
August 23, 2019 12:58 ET (16:58 GMT)
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